Trinidadian insurance conglomerate Guardian Holdings Limited has recorded a one per cent increase in net profit to end 2021 at TT$798.35 million, up from TT$778.69 million in 2020.
Taxes for 2021 amounted to TT$215.02 million compared to the TT$243.84 million booked in 2020. For the fourth quarter in December 2021, net profit after taxation amounted to TT$325.83 million, up from TT$302.51 million in 2020.
Net profit attributable to shareholders came out at TT$782.33 million relative to a profit attributable to shareholders of TT$774.46 million in 2020. For the December quarter, net profit attributable to shareholders was TT$325.251 million (2020: TT$289.23 million).
Profit before taxation for 2021 amounted to TT$1.01 billion relative to a profit of TT$1.02 billion in 2020. For the quarter, profit before taxation totalled TT$404.53 million (2020: TT$375.37 million).
Marginal rise in gross written premium
Gross premium written was seven per cent higher at TT$7.03 billion, compared to TT$6.56 billion reported for 2020. As a result, net written premium increased by six per cent to TT$4.63 billion, up from TT$4.38 billion for the year ended December 31, 2020.
For the quarter ended December 31, 2021, gross written premium amounted to TT$1.66 billion (2020: TT$1.56 billion) and net written premium totalled TT$1.24 billion (2020: TT$1.11 billion).
Net results from insurance activities for the year fell 25 per cent, year over year, from TT$1.41 billion in 2020 to TT$1.06 billion in 2021, whereas for the quarter, net results from insurance activities amounted to TT$430.92 million. This is coming from TT$415.46 million in 2020.
The management reports that, “This performance was adversely affected by the US$10 million loss in Guardian [regarding] our Bermuda-based reinsurance company, as was disclosed in third-quarter 2021. Our life insurance operations have been negatively impacted by policy lapses, largely attributed to the challenging economic environment.”
The latter impact manifested in a subdued fourth-quarter 2021 performance. The management further reports that it is encouraged by the “Group’s ability to grow in Gross Written Premiums and Net Written Premiums.”
Net income from investing activities increased to TT$1.61 billion in 2021 from TT$988.64 million in 2020, a 63 per cent increase. For the quarter, net income from investing activities rose 12 per cent to TT$457.89 million (2020: TT$407.89 million).
Fair value gains on the local market equities
According to management, “A significant element of this increase is attributable to fair value gain in local market equities of our respective operating jurisdictions. The group, as expected, continues to monitor the investment markets and rebalance portfolios as necessary.”
Fee and commission income from brokerage activities for the year rose marginally by 0.23 per cent to TT$144.66 million (2020: TT$144.33 million). Net income from all activities for the year rose 11 per cent to TT$2.82 billion (2020: TT$2.55 billion).
Net impairment losses on financial assets in the period under review was TT$136.02 million in 2021 relative to a loss of TT$15.70 million in 2020. Operating expenses for 2021 rose nine per cent to close at TT$1.50 billion relative to TT$1.37 billion in 2020.
Operating expenses for the fourth quarter closed at TT$427.67 million relative to TT$449.50 million in 2020. The Company also booked finance charges of TT$199.73 million for the year (2020: TT$153.85 million).
Deficit attributable to participating policyholders was TT$12.55 million relative to a surplus of TT$2.04 million in 2020. Total comprehensive profit amounted to TT$353.55 million (2020: TT$862.76 million) for 2021. For the quarter, total comprehensive profit amounted to TT$109.24 million (2020: TT$478.03 million)
Balance sheet at a glance
Total assets amounted to TT$34.58 billion as at December 31, 2021. ‘Investment securities’ and ‘cash and cash equivalent’ contributed the most the assets base amounting to TT$21.90 billion and TT$3.48 billion, respectively.
Shareholder’s equity as at December 31, 2021 stood at TT$4.98 billion (2020: $4.68 billion) resulting in book value per share of TT$21.44 (J$491.65) relative to TT$20.13 (J$428.13) as at December 31, 2020.